The former left-back, who won 78 England caps as a player, was sacked by Manchester City on 14 May after two years in charge at Eastlands.

He also managed Nottingham Forest in a caretaker capacity in 1996/97 after a successful playing career that took in Coventry, Forest, Newcastle, West Ham and Manchester City.

"I'm looking forward to the challenge of qualification for the 2009 Finals and working hard with everyone else at the FA and within the game to develop future England internationals," added Pearce.

"It was a privilege to work with the young players in the Euros in Holland this summer and many of those players are still available for the Under-21s and will form the core of the squad which we will be building over the next two years."

Stuart will be a superb addition to our coaching team working with the young players who we hope will become the England internationals of the future

Trevor Brooking

Sir Trevor Brooking, the Football Association's director of football development, says he was impressed by Pearce's achievements this summer.

Brooking explained: "Stuart did an excellent job with the Under-21s last season and they came incredibly close to reaching the final in Holland.

"Stuart's record and achievements as a player set a great example for any young player.

"And as a coach he already has a wealth of experience at the top level including taking all of his coaching badges with the FA right through to the Pro Licence.

"He will be a superb addition to our coaching team working with the young players who we hope will become the England internationals of the future."

Pearce's next game in charge is a friendly against Romania at Bristol City's Ashton Gate ground on 21 August.